Mounting forex to spur investment: Jaswant Singh

Forex reserve comprising foreign currency assets, gold and Special Drawing Rights has reached $100.48 billion on Saturday. The reserves according to the Reserve Bank of India, will continue to be used to contain volatility in the forex market, provide comfort to launch policy measures for accelerated growth and to withstand any possible supply shocks. The high forex reserves, Singh said in his statement, will enable Indian corporates and financial intermediaries to access needed foreign exchange currency resources for their domestic and global activities, at finer and more favourable terms than ever before. Singh said, “the level of foreign exchange reserves had fallen to a low of less than $1 billion in December 1990. It is also noteworthy that since end of March 1991, whereas India’s foreign exchange reserves have risen by around $94 billion, at the same time country’s external debt has gone up by only $20 billion.”

The minister added that forex reserves touched a record level despite country pre-paying $5 billion of external debt in 2003; retiring $5.5 billion on account of redemption of Resurgent India Bonds; making a contribution of $498 million towards the Financial Transactions Plan of IMF to enable it to lend to countries that require assistance; and taking several measures during the recent months.